Just back from a 10 day business trip to Dubai and I am most definitely in a state of depression. Don’t get me wrong, Ireland is indeed a wonderful place to live, but rarely have I been to a location where I actually contemplated cancelling my trip back home – permanently! Such is the allure of this magical Emirate that seems to cater for every need, with the major benefit of no personal or business taxes...

Being whisked through passport control with my thumbprint, fast-pass card and AMEX Centurion Card travel service was a bonus as I watched at least 300 people queuing the hard way, having flown in from hundreds of destinations into one of the largest airports in the World. Some 200,000 people emigrate to Dubai each year. If the allure of zero taxation coupled with readily available jobs, a booming economy and 5 star luxury everywhere was not enough, the almost constant sunshine makes it a compelling destination, except perhaps the 45C temperature in the summer. On my second day there, I read an article stating that on the order of the Absolute Ruler, all municipal and health workers in the city would be given a 70% pay rise coupled with unprecedented increases in the healthcare infrastructure.

This is in stark contrast to Brian Cowen’s pay freeze, ward closures and looming redundancies, showing the black-and-white difference in the economies, government funds surplus and policies. Dubai is the World’s fastest growing city with economic growth of 13% in 2006 and now exceeding that of China and India. Current GDP (Gross Domestic Product) is in excess of €25 billion and many commentators believe that it is set to become the most important place on the planet. Read on to find out why... The Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum has a grand vision: acknowledging the limited supply of oil, his master plan is to focus on tourism, attracting international business investment, real estate development and overseas investments. Neighbouring Abu Dhabi has oil and gas reserves for at least the next 120 years but Dubai is nowhere near as well endowed. A great deal of Arab money, invested in the US, came back from there after 9/11 and needed an outlet. The fact that oil is now exceeding USD100 a barrel means that the Gulf is awash with liquidity.

There is clearly a role for a strategic financial centre in the Middle East: Beirut played it once, Dubai could do so now. Money has been draining out of Iran for years and Dubai, just across the Gulf, has always been a traditional place for Iranians to put their money to work. Accordingly, since the early 1960’s the Maktoum family have been quietly investing in substantial overseas assets and developing local infrastructure. This strategy has certainly paid off. The US Banking crisis has led to Middle Eastern Emirates coming to the rescue of undercapitalised Banks forced to write down billions in sub-prime and Collateralised Debt Obligations. For example, the Abu Dhabi Investment Authority acquired some 4.9% in Citigroup for USD 7.5 billion in November 2007, whilst the Dubai state-owned property and land development Company, Nakheel, is busy building some of the most ambitious and stunning projects anywhere on Earth.

A cursory glance on their Website (www.nakheel.com) is well worth a look, revealing marvels such as The Palm Jebel Ali. Land and property prices have increased by over 300% in the last 4 years alone and now achieving a consistent average of 15% per annum and set to continue for the next 5 years at this level and stabilising to perhaps 8-10% after that. A most interesting feature is that strict laws have been imposed for Formal Regulation of the property market, encompassing Escrow accounts, State protection and thorough vetting and licensing of Agents. This is something that is still sadly lacking here in Ireland, as evidenced by the recent Michael Lynn debacle. Indeed, Irish investors, experiencing serious downturns in their traditional UK investments, are diverting millions of Euro into Dubai. They are quickly realising that strong capital growth and the State laws imposing 6-12 month up front property rental agreements allow their investments to cover all their costs and provide unprecedented returns on their money. Apart from overseas investments, local business is thriving at every level.

Mohammed Noor Taleb, a 75-year-old textile trader in Dubai, who had lived with his mother as a child in a tent made of palm leaves, now owns a business in Indian cottons turning over USD 5.2M a year. However, the main sector in Dubai is construction, with an army of some 250,000 men, largely from India and Pakistan, labouring to create the new glimmer of fantasy. However, earning on average just USD300 a month, they live in camps, four to a room, hidden away in the industrial quarters of the city. A night in one of the luxury hotels would cost three months' wages of one of the men who built it. Below and around their work sites, the new streets are chaotic with rubble and piles of steel.  The traffic is already as bad as Los Angeles. The city authorities are now giving priority to new roads with hundreds of millions of dollars being spent on bridges across the Dubai Creek, five lanes in each direction, but still a taxi ride that might take 10 minutes at midday lasts an hour at either end of it. If you ask a driver to take you to some places, he laughs. "Do you want to have a very long talk?" he says. It’s not too bad really and if you stay central, you’ll be grand. So, if you want to blow away the cold January blues, go online today and book yourself a flight to Dubai at a cost of just €234 and you can even fly from Shannon via Dublin. That’s one thing Aer Lingus have got right, so avail of it today. You will not regret it and who knows, work out there in your field of expertise you might decide to stay for good – tax free!

Jas Kalsi, BSc(Eng)Hons, MBA, is a Management Consultant and past President of the Ennis Chamber of Commerce.